The Financial Supervisory Service (FSS) will issue nullification certificates under the FSS Governor's name to illegal private lenders who have entered into ultra-high interest loan contracts exceeding 60% annually.
The FSS announced on the 5th that it will implement this measure as part of its financial consumer protection improvement roadmap. Under the revised Lending Business Act that took effect in July last year, ultra-high interest loan contracts exceeding 60% annually are deemed antisocial contracts, meaning borrowers are not obligated to repay either principal or interest.
Victims of illegal private lending can apply for nullification certificates through the FSS website (non-face-to-face) or through the Credit Counseling and Recovery Service's Integrated Financial Support Center for ordinary citizens (in-person). The FSS will issue nullification certificates after reviewing supporting documents submitted by victims, including contract details, contract execution date (after July 22, 2025), and annual interest rate (exceeding 60%). The nullification certificates will be sent via the illegal lenders' phone numbers and mobile messengers.
An FSS official said, "Victims can use the nullification certificates as reference materials in lawsuits for unjust enrichment returns," adding, "We will strengthen monitoring of illegal private lending and do our best to prevent damages and provide remedies through cooperation with related agencies."